My wife and I paid $45000 for our home and have made $50000 in improvements(let’s assume they all qualify). Since we can sell our home without taxes on up to a $500000 profit is there any financial point in keeping these records, e.g. a $12000 addition. ?
Terry Says: Well, you probably asked the wrong person, since I keep EVERYTHING to document all tax/investment gains! But since you’re nowhere near that $500,000 limit, I guess you will be ok on this — unless something BIG happens in your neighborhood, making your property more valuable. (Imagine a developer trying to buy up the whole block and paying a premium for your last lot!)